Updated: Jun 2
Mercury's new program
This week Mercury launched a new rewards program. Customers had been able to earn an internal currency called Mercury Dollars to reduce their bill, or if they chose to, convert those Mercury Dollars to Airpoints Dollars. Mercury Dollars could also be earned for completing challenges, such as step challenges, in the Mercury app.
The new Mercury rewards offering launched this week includes:
Points earned for
Paying a bill (1 point per $)
Taking part in challenges on the Mercury app (including step challenges and refer a friend)
Points can be redeemed for
Free power days
Discounts off bills
Mercury automatically offers Free Power Days over and above this as an anniversary bonus:
1 Free Power Day if you’ve been with Mercury 1 or 2 years
2 Free Power Days if you’ve been with Mercury 3 or 4 years
3 Free Power Days if you’ve been with Mercury 5 years or more
Leaving the loyalty coalitions
The biggest power companies in New Zealand were all with one of the major loyalty coalitions this time last year (listed here by market share ranking from the Electricity Authority);
Contact Energy (today 20% market share) was and still is with AA Smartfuel
Genesis Energy (today 18% market share) was with Flybuys (and left last year)
Mercury Energy (today 14% market share) was with Air New Zealand Airpoints. Mercury has since bought 4th ranked TrustPower (today 12% market share).
Market share data from Electricity Authority
Mercury leaving Airpoints makes it the second power company in six months to exit their relationship with an external loyalty coaltion. At the end of last year Genesis Energy exited Flybuys.
Genesis are already offering their equivalent of free power called Power Shouts.
Genesis Energy reports free power usage (customers prefer weekends)
Results from Genesis Energy's investor presentation February 2022
Both Mercury and Genesis are successfully building on three key themes in loyalty;
They're embedding their loyalty experience inside their own customer experience
Like retailers have always done, they're making their own products the rewards in their loyalty programs
They're building a digital relationship with their customers between bills.
The highest rate of power company switching in the world
Genesis reports churn declined to 13% with their combined digital and free power loyalty offering. This is a key output as New Zealand has the highest rate of switching between power companies in the world (research from University of Waikato).